What Opportunities Are Available to UK SME’s During This Uncertain Economy?
It is no secret that the UK is facing growing fears of a recession as we head into 2023. With the UK seeing huge economic upheavals over the past few years, with Brexit, the Coronavirus pandemic, the governments ‘mini budget’, generational high inflation and rising interest rates, and waning consumer demand and economic uncertainty as a global recession looms, it’s understandable that many businesses are feeling nervous about performance over the coming months.
Whilst there are currently headwinds in the economy, there’s still plenty of opportunities for businesses. For example, the oil and gas industry, despite a tumultuous few years, is currently experiencing strong growth. With increasing demand due to countries cutting back on their reliance on Russian oil and gas, the sector is seeing a boost in demand. This presents an opportunity for a host of different businesses that are involved in the supply chain.
The move away from Russian oil and gas has also highlighted the need for increased investment into the renewable energy sector. The increasing international focus on environmental issues and the green agenda, most recently amplified by the COP26 and 27 conferences, has helped to increase demand not just for the environmental sector, but for green initiatives across the economy. At Cynergy Business Finance we recently provided a facility to Puredrive Energy, a solar energy battery storage business. Their growth trajectory displays both the continued innovation and investment into renewable technologies, as well as the increasing demand and growth within the environmental sector as the green agenda becomes increasingly important to consumers and businesses.
During times of economic downturn it’s essential that businesses can continue to access reliable funding, not only to support their own growth, but to aid recovery within the wider economy.
However, finding funding support during economic downturns can be difficult. We’re already seeing the credit appetite of some funders becoming more conservative, limiting access to support. As we head into 2023, access to funding is only likely to become more difficult from some funders, meaning businesses looking to grow may find it harder to find the necessary support.
For those businesses looking to expand, there are still plenty of funding providers that remain ready to offer support, including Cynergy Business Finance. Asset-based lending, as opposed to other funding solutions, is more flexible, and allows businesses to secure funding against a variety of company assets, including invoices, stock, plant and machinery and property. This tailored approach not only helps businesses to access a larger funding line to give them the best opportunity to succeed, but also helps businesses who may otherwise be overlooked by traditional banks to receive the support they need to succeed and maximise growth.
All comments to be attributed to Ted Winterton, Managing Director at Cynergy Business Finance.
To find out more: